6 March 2012 PAID CORP. # 91 New York St. Cubao, Quezon City Tel. No. 955-7285 Fax no.

995-7567 For the attention of Subject Mr. Custuna;

We are requiring you to submit a Revised Work Schedule for the completion of the Deep Well with consideration on the date of initial operation being 5 March 2012 and the completion remaining to be 15 April 2012. It confirmed that the contract date commenced on 16 January 2012 and is scheduled to be completed on 15 April 2012; however the mobilization alone for your equipment took over one month to complete or a total of forty-four (44) days. As per your letter dated 27 February 2012, the reasons for your delay in mobilization is due to mechanical problems, which is not acceptable by the contract terms as these are issues that should have been prepared even during the time of the submission of the quotation and as it is assumed that your offer includes equipment that is in proper working order. As this is the case, we require the revised work schedule to enable us to accurately evaluate the daily performance and consider any requirements from the part of SEPI in order that there shall be no hindrance in the target accomplishments. The present performance of the drilling operations that started yesterday, 5 March 2012, has a rate of below 6 meters per day, it is expected that there will be a progressive improvement of this rate to enable you to achieve the goal of 156 meters complete with testing and casings within the next forty (40) days to prevent any penalties on your part. Please submit the said Revised Work Schedule by Thursday, 8 March 2012, to be discussed at the regular coordination meetings held every Friday. For your compliance.

: :

MR. FELIX G. CUSTUNA General Manager Sierra Madre Village Deep Well Revised Work Schedule

Robie Sandoval CM ProConstruct Corp. Noted by:

Ferdis G. Ociones PM - SEPI